CFD trading for long/short

[idrinkecoke]

Anyone using CFD for trading? Is it better in terms of minimizing losses?

Is it use mainly for shorting only?

Which Singapore CFD broker is better?

 

[zheng]

both short n long depending on your trading style

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[murphys]

Anyone using CFD for trading? Is it better in terms of minimizing losses?

Is it use mainly for shorting only?

Which Singapore CFD broker is better?

I use CFD for short term trading. It does not minimize losses. However, it would exaggerate your result due to leverage. You also need to take into account financing cost which typically is around 5%pa. That means, you need to have very strong conviction that your trading needs to cross that 5% hurdle otherwise the financing cost will really eat into your profits or amplify your losses.

CFD is not the only tool that you can use to short a stock. One can also buy PUT option and that is also a viable way to short stocks.